In 2018 the final energy consumption (FEC) in Latvia was 4.07 Mtoe; the increase was about 20% in comparison with the year 2000. The greatest changes were in the transport sector where energy consumption increased by about 54% and the share of which in the FEC increased by about 6 percentage points to reach 27% in 2018. In the residential sector energy consumption dropped by about 13% in comparison with the year 2000 and the sector has the other greatest share in the FEC with 31% in 2018. Since 2000 the FEC in industry had increased by around 55% with a share close to 22% in 2018.
Figure 1: Final energy consumption by sector (normal climate)Source: ODYSSEE
Energy efficiency for final consumers, as measured by ODEX, improved by 33%, or 2.2% per year from 2000 to 2018. In the industry, despite the economic recession (2008-2010), there has been steady progress and larger gains than in the other sectors (3.3% per year). The financial support programs from the State and the implementation of legislation targeted at reducing heat losses from buildings had contributed to the improvement of energy efficiency in the residential sector by about 40% (average 2.8%/year). For the transport and service sectors, gains are lower (1.7% and 0.5% per year respectively since 2000).
Figure 2: Technical Energy Efficiency IndexSource: ODYSSEE
Energy efficiency (EE) improvement is one of the top priorities of the national energy sector development which allows for the cost-effective reduction of risks associated with security of energy supply, provides sustainability, competitiveness and growth of national economy, in line with a contribution in GHG emissions mitigation. National Energy and Climate Plan (NECP) 2030 states EE as the first principle. The Latvia primary energy consumption should not exceed 5.4 Mtoe in 2020 and 4.5 Mtoe for final consumption: these values fulfill the indicative national EE target of Art.3 of Directive 2012/27/EU (EED) – 0.67 Mtoe primary energy savings in 2020. One can see (Figure 1) the actual final energy consumption in 2018 had been significantly below the indicated 2020 value. According NECP2030, the indicative 2030 values for primary energy consumption (~4 Mtoe) and final energy consumption (~3.5 Mtoe) are respectively per ~25% and per ~21% lower, compared to 2020 values. Mix of instruments are used for EE policy implementation. The co-financing of EE investments (see sectorial Tables) and energy management systems can be noted as ones of them. The current Energy Efficiency Obligation Scheme includes, up to December 2020, electricity retailers. NECP2030 considers the widening of coverage of EEOS obliged parties.
Table 1: Sample of cross-cutting measures
|Measures||NEEAP measures||Description||Expected savings, impact evaluation||More information available|
|Energy Audits (EA) and Energy Efficiency Improvement in Large Enterprises (Industry, Services, Transport sectors)||yes||The first EA should be performed by December 2017, or within one year after the inclusion in the list of large entities. The entity shall provide annual report on implemented energy efficiency (EE) measures and energy savings reached. The entity shall implement by April 2020 at least three EE measures with the highest energy savings or highest economical return.||High||Link|
|Energy Management Systems (EMS) in Entities (Merchants) - Large Electricity Consumers (> 500 MWh /year of electricity consumption in two subsequent years, entities in industry, services and transport sectors).||yes||The EMS should be implemented by April 2018 or within one year after inclusion in the list of large electricity consumers. The entity shall provide annual report on implemented energy efficiency (EE) measures and energy savings reached. The entity shall implement by April 2022 at least three EE measures with the highest energy savings or highest economical return.||Medium||Link|
|Energy Efficiency Obligation Scheme||yes||By December 2020 the Scheme includes electricity retailers with annual sale over 10 GWh.||High||Link|
|Efficiency requirements for district heating (DH) systems||yes||Cabinet of Ministers Regulation states minimum efficiency factors (average annual) for DH production technologies and maximum heat loss for pipeline networks. In turn, the Cohesion Fund, within the framework of National Operational Programme “Growth and Employment" of 2014-2020 planning period, provides investment co-financing to improve efficiency of DH systems.||Medium||Link|
|Energy Management Systems (EMS) in municipalities and state authorities.||yes||Mandatory implementation of EMS in (1) capital city Riga and largest nine cities, and (2) those municipalities which fulfil threshold criteria for the territorial development index and population number. The obligation criteria could be revised in the context of 2021 administrative territorial reform. Range of municipalities have implemented EMS voluntary. Mandatory implementation of EMS in those state direct administration institutions which have buildings with total heated area 10000 m2 and above||Medium||Link|
In 2018, space heating accounted for 68% of sector’s consumption, water heating for 18% and cooking for 7%. In comparison with 2001 the share of electrical appliances and water heating has grown by respectively 1.4 and 5.5 percentage points. At the same time the share of space heating has decreased by 6.5 percentage points. While energy consumption of electrical appliances and water heating per dwelling increased since 2000 (1% and 1.6%/year respectively), space heating consumption decreased by 1.0%/year over the same period. Hence energy consumption per dwelling decreased by 0.4%/year since 2000 largely due to energy efficiency gains for space heating.
Figure 3: Energy consumption of space heating per m2 (normal climate)Source: ODYSSEE
Figure 4: Energy consumption per dwelling by end-use (except space heating)Source: ODYSSEE
The final energy consumption of households has decreased slightly by 0.6%/year in the period 2000-2018. On the one hand, two main drivers contributed to increase energy consumption – larger homes (by 0.44 Mtoe) and changes in consumer behavior (by 0.22 Mtoe). On the other hand, energy savings (0.73 Mtoe) fully compensated the effect of the above-mentioned energy consumption drivers. As a result, the final energy consumption of residential was 0.13 Mtoe lower in 2018 than in 2000.
Figure 5: Main drivers of the energy consumption variation of householdsSource: ODYSSEE
Energy consumption per employee increased by 5% between 2000 and 2018. To a large extent it was due to the sharp increase by 41% of electricity consumption per employee. Though electrical appliances become ever more efficient, the rapid increase in their number and diffusion of ICT in offices contributed to the growth of electricity consumption.
Figure 6: Energy and electricity consumption per employee (normal climate)Source: ODYSSEE
Buildings is one of the top priorities of the national energy efficiency (EE) policy. Mix of investment support, regulation, information measures are used. Thermal engineering of new apartment building envelopes since 1980 is characterized by continuous stringent regulations, which resulted in decrease of the specific normative energy consumption for heating: 150-200 kWh/m2/year (1980), 100-130 (1992), 70-90 (2003), 60-85 (2015), 40 (2021) kWh/m2/year. However more than 90% of total floor area of multi-apartment buildings were built before 2004. Annual average heat consumption for heating in multi-apartment buildings in 2016 was around 140 kWh per m2. It is envisaged that measures on improving EE in buildings will decrease this figure by about 15% in 2023. The Cabinet of Ministers Regulation on Energy Certification of Buildings (2013, amended 2015) introduced six energy performance classes. In April 2014 the provisions of the re-casted Directive 2010/31/EU had been included in the national Construction Standard, followed by the new Construction Standard (in force 2020). High attention to EE of buildings is paid by the National Energy-Climate Plan 2030. In 2020 new measures to promote EE in single-family buildings and to provide assistance for families with children to purchase high EE dwelling were introduced.
Table 2: Sample of policies and measures implemented in the building sector
|Measures||Description||Expected savings, impact evaluation||More information available|
|Energy certification and Energy Performance (EP) classes of residential buildings||Establishes Latvia specific values for EP classes. Introduced in July 2013. In April 2021 the EP values have been recasted. Re-casted EP classes are based on evaluation of both (1) energy consumption for heating (A+, A-F classes), and (2) non-renewable primary energy consumption (A+, A-G classes). Evaluation of non-renewable primary energy consumption and voluntary A+ class have been introduced, as well as specific reference energy consumption values have been re-casted, in 2021. Detailed tables of specific reference energy performance values are provided in the description of the measure (see the link). Requires new residential buildings, if time period of approval of a construction is from the 1st January 2021, to meet nearly zero energy building standard, if technically or functionally possible and benefit analysis of useful lifetime does not indicate the losses. Defines EP requirements for renovated buildings. States threshold level for existing, in exploitation, buildings (EP class at least "E") above which the existing building needs energy performance improvement measures. For EP classes of non-residential buildings see the measure HOU-LV1705.||Medium||Link|
|Increasing energy efficiency (EE) in multi-apartment buildings||EE improvement measures in multi-apartment buildings are co-financed by the ERDF within the National Operational Programmes (NOP): (1) 2007-2013 planning period (NOP “Infrastructure and Services”) - 741 multi-apartment buildings and 55 social apartment buildings renovated, (2) over 2014-2020 planning period (NOP "Growth and Employment") - almost 1000 multi-apartment buildings to be renovated by 2023. The measure will be continued in 2021-2027 planning period.||High||Link|
|Information programme “Let’s Live Warmer”||Highly effective programme ensuring that information on energy efficient housing renovation is widely available. Diverse actions of the programme motivate flats’ owners to renovate apartment buildings and provide information on the best practices. Information is provided also regarding the practice of maintaining the apartment buildings after renovation.||Medium||Link|
|Increasing energy efficiency (EE) of public buildings||Over the 2014-2020 planning period, EE improvement measures in municipal and state public buildings are co-financed by ERDF within the National Operational Programme “Growth and Employment” (see the measures SER-LV1706 and SER-LV1707 respectively). The measure will be continued in 2021-2027 planning period.||High||Link|
|National Construction Standard LBN002-19 ”Thermotechnics for building envelopes”||The new Standard replaces previous one with the same title which was in force until 31.12.2019. The new Standard directly incorporates the energy performance requirements (in kWh per m2 annually) for new and reconstructed/renovated buildings. In turn, the objective of the adjusted maximal U values is to eliminate the design of unsafe construction elements. See the measures HOU-LV0784 (residential buildings) and SER-LV3874 (non-residential buildings)||Medium||Link|
|Public sector as an example: demonstrating low-energy and energy self-sufficient building||The current national green investment scheme (revenues from EU ETS Emissions Allowances Auctioning) provides the co-financing to low-energy and energy self-sufficient public building.||Medium||Link|
|Energy efficiency (EE) measures in education sector buildings||Over EU Funds 2014-2020 planning period the complex support is provided for education sector institutions (both general education, vocational education and universities), aimed to improve the study environment. Among other activities, the investment support is used also to improve the EE of buildings (both schools and dormitories) and their engineering and lighting systems||Medium||Link|
|Promotion of energy efficiency (EE) improvement measures in single-family buildings.||New measure, established 2020, In July 2020 the programme for guarantees of EE loans has been adopted. In February 2021 it is adopted also the grant programme both for technical assistance and for the construction works, this grant programme is available for two target groups: (i) families with at least three children, and (ii) buildings outside capital city Riga, Jurmala city and edge municipalities of Riga city.||Medium||Link|
Road transport constitutes the greatest part of energy consumption in transport. In 2018 cars accounted for 56% of the sector’s consumption and road freight transport for 34%. From 2000 to 2018 the share of railway in transport energy consumption has decreased from 9.6% to 5.5%.
Figure 7: Transport energy consumption by modeSource: ODYSSEE
The passenger traffic grew by around 1.1%/year since 2000. The growth was mainly observed in the traffic by cars (1.6%/year) while public transport showed an opposite trend: road public transportation decreased by 0.5%/year and rail by 1.5%/year. In 2018 cars represented 84% of the traffic of passengers.
Figure 8: Modal split of inland passenger trafficSource: ODYSSEE
Freight transport (measured in tonne-kilometre) showed a steep increase as well in comparison with 2000 (3.4% per year). Road traffic has increased much faster than rail (6.5% per year against 1.6% per year). The share of road freight transport has increased by 19 percentage points since 2000 to reach 46% in 2018.
Figure 9: Modal split of inland freight trafficSource: ODYSSEE
The energy consumption in the transport sector has increased by 2.4%/year from 0.72 Mtoe to 1.11 Mtoe. The main drivers for the increase are the growth in passenger and freight traffic (0.38 Mtoe) and shift from rail to road for freight and from public transport to cars (0.19 Mtoe). Energy saving (0.32 Mtoe) almost counterbalanced the activity effect thanks to more efficient cars and trucks.
Figure 10: Main drivers of the energy consumption variation in transportSource: ODYSSEE
Latvia policies promote zero/low-emission vehicles and environmentally friendly transport infrastructure. "Electromobility Development Plan 2014-2016" had been followed by "Alternative Fuels Development Plan 2017- 2020". A mix of measures is applied: investment, regulations (standards, labelling, public procurement), fiscal, information, education ones. In 2016 the cars’ annual operational tax based on specific CO2 emissions was introduced. From 2021, CO2 emissions-based taxation is applied also to light duty vehicles and EURO class based taxation is introduced for buses and duty vehicles having gross weight above 3500 kg, The country-wide electric vehicles' fast charging network is under establishment. Widening of environmentally friendly public transport use is ongoing as well. High attention to zero/low emission vehicles is paid by National Energy-Climate Plan 2030.
Table 3: Sample of policies and measures implemented in the transport sector
|Measures||Description||Expected savings, impact evaluation||More information available|
|Annual operational tax of cars and light duty vehicles based on specific CO2 emissions||Motivates car owners to choose fuel efficient vehicle. The 2016 Amendments on the Law „On the Vehicle Operation Tax and Company Car Tax” (in force from the 1st January 2017) have introduced specific CO2 emissions based tax for both new cars and those cars in operation which had first registration in 2009 and afterwards (two years transitional period had been applied for those cars registered up to 31.12.2016). In its turn, the 2020 Amendments (in force from the 1st January 2021) have introduced specific CO2 emissions based taxation also for light duty vehicles with gross weight up to 3500 kg registered for the first time after the 31th December 2011.||Medium||Link|
|Development of the infrastructure of environmentally friendly public transport||The three specific objectives are (1) widening of trams infrastructure, (2) increase of number of environmentally friendly public buses, and (3) implementation of new energy efficient EMU trains (replacement of old ones). Promotes passenger shift to user convenient public transport. Investments are co-financed by Cohesion Fund within the National Operational Programme “Growth and Employment 2014-2020”. See the measures TRA-LV2285 (trams and buses) and TRA-LV288 (EMU trains).||Medium||Link|
|Electromobility Development||Currently implementation of country-wide electric vehicles’ fast charging infrastructure is on-going, co-financed by the ERDF within the National Operational Programme “Growth and Employment” of 2014-2020 planning period.||Medium||Link|
|Annual operational tax of buses and duty vehicles, with gross weight above 3500 kg, based on EURO class||The 2020 Amendments on the Law "On the Vehicle Operation Tax and Company Car Tax", in force from the 1st January 2021, have introduced the vehicle annual operational tax based on EURO class for buses and duty vehicles with gross weight above 3500 kg.||Medium||Link|
|Exhaust gas control within the framework of state technical inspection of vehicles||Mandatory annual technical inspection of motor vehicle ensures that only those vehicles that comply with technical and environmental requirements are being allowed to take part in road transport.||Medium||Link|
The energy consumption in industry increased by 2.5% per year. The consumption increase was mainly brought about by two branches: non-metallic minerals by 5.5% per year and wood and wood products by 10.3% per year; the later absorbs 56% of the energy consumption of the manufacturing sector.
Figure 11: Final energy consumption of industry by branchSource: ODYSSEE
Though steel production decreased considerably since 2014, the previous period revealed the positive effect of improving and replacing technologies on the unit consumption of this branch.
Figure 12: Unit consumption of steel (toe/t)Source: ODYSSEE
Since 2000 final energy consumption increased by 2.5%/year driven by a growth in activity (0.51 Mtoe) and other factors (0.26 Mtoe). Half of these effects have been offset by energy savings (0.43 Mtoe) thanks to technical improvements of the machineries and processes. The share in the final energy of 5 energy intensive branches decreased by about 18 percentage points.
Figure 13: Main drivers of the energy consumption variation in industrySource: ODYSSEE
A mix of investment co-financing, regulatory, information measures is used. Currently, over the 2014-2020 planning period, the energy efficiency investments in the manufacturing industry are co-financed by national operational programmes. In turn, the State Development Finance Institution ALTUM provides complementary measures. High attention to energy efficiency in industry is paid by "National Energy-Climate Plan 2030". See also the section "Overview" regarding mandatory implementation of energy audits and energy management systems.
Table 4: Sample of policies and measures implemented in the industry sector
|Measures||Description||Expected savings, impact evaluation||More information available|
|Efficient use of energy resources, reduction of energy consumption and transfer to RES in manufacturing industry||In the period 2010-2015 the measures to increase energy efficiency (EE) in Industry were co-financed by the national green investment scheme (revenues from emissions trading under UFCCC Kyoto Protocol). Over the 2014-2020 planning period, the investments to improve EE in manufacturing industry are co-financed by Cohesion Fund within the National Operational Programme “Growth and Employment”. The activities include EE improvement in both industrial buildings and their engineering and lighting systems and industrial production technologies as well as implementation of small-scale RES utilizing energy production technologies. The measure will be continued in 2021-2027 planning period.||High||Link|
|Investments to Improve Energy Efficiency (EE) in Food Processing Enterprises||Over the 2014-2020 planning period, the investments to improve EE in food processing industry are co-financed by EAFRD within the National Rural Development Programme||Medium||Link|
|ALTUM programmes||The State-owned Development Finance Institution “ALTUM” provides complementary programmes for energy efficiency, such as providing green bonds' loans (IND-LV3877), grants for energy audits (IND-LV3896).||High||Link|
|Energy efficiency improvement within the complex investment co-financing programme for SME's||Over the EU Funds 2014-2020 planning period, co-financing of investments by ERDF is done to establish new or reconstruct existing production premises and infrastructure in order to encourage development, economic activity, growth of productivity of SME's in manufacturing industry. Investments in energy efficiency is the part of eligible activities.||Medium||Link|